Golden Ocean Group Beats Q2 Estimates; Says Dry Bulk Demand Remains Fundamentally Strong

Golden Ocean Group Ltd GOGL reported a Q2 FY23 revenue of $213.38 million, exceeding the consensus of $148.97 million. 

The company reported TCE rates for Capesize and Panamax/Ultramax vessels of $19,083 per day and $15,617 per day, respectively, in Q2.

The operating expenses stood at $169.8 million vs. $170.4 million a year ago.

Net operating income declined to $43.6 million from $155.8 million in the prior year quarter.

Adjusted EBITDA stood at $80.4 million vs. $191.6 million a year ago. 

Adjusted EPS of $0.17 was better than the consensus of $0.12.

As of June 30, 2023, cash and cash equivalents of $107.3 million, including restricted cash balances of $3.4 million. Operating cash flow totaled $45.5 million in the quarter.

As of August 29, the company's fleet consists of 97 vessels, including four newbuildings, with an aggregate capacity of approximately 14.3 million deadweight tonnes (dwt).

Dividend: The company announced a cash dividend of $0.10 per share for Q2, payable on or about September 19, 2023, to shareholders of record on September 11, 2023.

Repurchase: The company repurchased shares worth $6.9 million in the quarter. 

“Golden Ocean has continued to deliver solid performance against a very volatile macroeconomic backdrop. Despite headline risks related to inflation and interest rates, dry bulk demand remains fundamentally strong, driven by shifting trade routes, the need to secure the energy supply chain, and the increased significance of emerging trades, including the West African Bauxite trade. The forecast for fleet supply growth also remains favorable with the orderbook near historical lows. Combined, these factors support our optimistic near and long-term outlook, while closely monitoring the developments in the Chinese economy," said Lars-Christian Svensen, Interim Chief Executive Officer.

Price Action: GOGL shares are trading higher by 4.06% at $7.18 premarket on the last check Tuesday.